Consider a bond with par value of eur 1000 and maturity in

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Consider a bond with par value of EUR 1,000 and maturity in three years, and that pays a coupon of 5% annually. The spot rate curve is as follows: 1-year, 6%; 2-year, 7%; and 3-year, 8%. The value of the bond is closest to:

A. 904

B. 924

C. 930

D. 950

Reference no: EM13568760

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